RE: KDNC SP11 Apr 2018 12:14
So in short, what is this lot worth now to us ?
SUMMARY OF CALCULATIONS
A. Current Resources for LV and JV#1
i) We have a resource for LV of 1.273mt, after costs worth $5.728bn
ii) We also have a resource for JV#1 of 2.01mt after costs worth $9.045bn
iii) A total resource for LV & JV#1 concessions of 3.283mt, worth $14.773bn
iv) From these REM resource worth is $4.183bn and BCN is worth $12.06bn
v) From this REM has a resource value per share of 45.58p
B. Potential resource for JV#2 (the Megalit, Buena Vista and San Gabriel)
i) Potential resource is approx 16 times the 2.41mt (LV and JV#1 resource) which is 38.5mt (based on guesswork).
ii) At $6500-$2000 = $ 4500/tonne, this is worth �173.5bn
iii) BCN 70% resource is worth $121.5bn
iv) REM 30% resource is worth $52bn
v) REM resource including 12.19% interest in BCN is worth $66.81bn
C. Combined potential resources
i) For LV, JV#1 and JV#2, the resource is worth 41.783mt worth $173.5 + $14.773 = $188.273bn
ii) REM is worth $4.183 + $66.811 = $70.994bn.
D. Share price estimate from NPV (w/cap, invest. and liabilities etc, low cf NPV, so assumes NPV = NAV)
i) LV - For REM interest in BCN, using BCN's NPV of $848m, the share price is 1.128p.
ii) LV - For REM interest in BCN using NPV of $1264m, the share price is 1.681p.
iii) JV#1 - For REM interest (38.533%) using $1404m, the share price is 5.904p
iv) LV and JV#1 for REM the combined share price is 1.681 + 5.904 = 7.585p
v) JV#2 - For REM the share price is 96.728p but guesswork and needs to be drilled fully
vi) From the total for the 3 concessions, the REM share price is 1.681 + 5.904 + 96.728 = 104.313 pence.